SOLUTION: Okay, so I am a very slow learner, and I find it hard to learn things myself if I do not have a fully worked example infront of me.
We have just moved onto exam prep and I am re
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We have just moved onto exam prep and I am re
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Question 735075: Okay, so I am a very slow learner, and I find it hard to learn things myself if I do not have a fully worked example infront of me.
We have just moved onto exam prep and I am revising simple interest
The question is
At what rate must $24 000 be invested to earn $180 per month?
My working so far consists of
180 = 24000 x R x T
The text book has given us T (time)... being 1/2 I know how to solve, I am just very confused at to why the time is 1/2?
Thank you so much
Kate
You can put this solution on YOUR website! P= Principal
r= rate percent per year
t= time in years
I= interest earned
you need 180 per month
180*12= 2160 per year
The formula is
I = P * R * T
2160 = 24000 *R *1 ( 1 year)
=0.09
0.09*100 = 9%
You have to invest at 9%
CHECK
If I invest $24000 @9% for 1 year
24000 * 0.09
=2160
2160/12= 180 per month
